ZoloStays raises $30M in Series B led by Nexus Venture Partners

The transaction is estimated to have pushed up the ZoloStays' valuation by more than $100 million.Sanghamitra Kar | ETtech | Updated: January 07, 2019, 09:36 IST

ZoloStays Property Solutions, a co-living and home rental startup, has raised $30 million in a funding round led by existing investor Nexus Venture Partners and IDFC Alternatives to fuel its expansion plan.

The Series B funding round also saw participation from Mirae Asset, as ET had reported in November last year. The transaction is estimated to have pushed up the company’s valuation by more than $100 million.

The Bengaluru-based startup, which has a platform that serves as a market place for property solutions like paying guest accommodation, service apartments and independent flats, will use the money to expand its footprint across the metro cities, according to Nikhil Sikri, its co-founder.

The company currently operates in Bengaluru, Hyderabad, Pune, Chennai and Kota and has tied up with numerous building owners and large developers for its expansion plan.

The startup claims to have 16,000 live beds and 50,000 locked-in beds under its two offerings—Zolo Standard and Zolo Select. In a statement the company claimed that it is the largest co-living player in India.

ZoloStays will also focus on automation and rely on IoT (Internet of Things) for smart electricity and water billing in its properties. “We also look to build a stronger community through our online and offline initiatives through gamification. Customisation is another key area where we now want to focus,” said Sikri.

The four-year old startup, founded by Sikri, Sneha Choudhry and Akhil Sikri, had raised $5 million in a Series A round in 2017. The company claims that it has grown twelve fold since then and plans to clock 10 times growth in the next two years. It plans to boost its current staff strength of 350 people by hiring another 200-300 by the end of 2019.

The company's revenue from operations stood at Rs 27 crore for FY18 while it incurred a loss of Rs 4 crore, said Sikri. He added that the startup plans to clock Rs 100 crore in revenue for the next financial year.

ZoloStays competes with the likes of NestAway, Stanza Living, YourSpace, Campus Ville and Coho Dorms. In the sector, NestAway raised Rs 330 crore last year while OYO, which entered the housing segment a few months ago, raised $800 million in the funding round led by SoftBank Vision Fund.

India’s residential rental market is pegged between $18 billion and $20 billion, according to industry estimates. The overall share of rental housing could be 35-45% of the total residential segment in India, according to property consultant Anarock, with urban centres accounting for nearly 70% of the total rental market.